Spirit Airlines announced Monday that CEO Ted Christie would step down from the role, just weeks after the ultra-low-cost carrier exited Chapter 11 bankruptcy.
The carrier said its board of directors has established an “Office of the President” to oversee the C-suite in place of Christie. The office will consist of the chief operating officer John Bendoraitis, chief financial officer Fred Comer and general counsel Thomas Canfield.
Spirit chief commercial officer Matt Klein is also stepping down. The carrier said Rana Ghosh, the company’s chief transformation officer, will serve as interim chief commercial officer.
Christie joined Spirit in 2012 as chief financial officer and became CEO in 2019. He was previously the chief financial officer of Frontier Airlines.
The leadership overhaul comes as a surprise as Spirit is in a turbulent time. The ultra-low-cost carrier sought to merge with JetBlue, but a federal judge struck down the merger, arguing that it was anticompetitive and would raise airfares. Spirit then filed for Chapter 11 bankruptcy months later, and exited bankruptcy in March.
Spirit was also in unsuccessful talks with Frontier about a merger.
As part of its bankruptcy restructuring, Spirit emerged from Chapter 11 in take-private deal backed by its top bondholders.
Airline Weekly senior analyst Jay Shabat said Spirit took few measures to make itself more competitive during bankruptcy.
“Now, the new executive team has to find a way to make money after five years of extreme distress for the company, and as air travel demand shows signs of decline,” Shabat said. “On the other hand, tough economic times can be good for budget carriers like Spirit. And keep in mind: Jet fuel prices are plummeting.”
Airlines Sector Stock Index Performance Year-to-Date
What am I looking at? The performance of airline sector stocks within the ST200. The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies.
The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more airlines sector financial performance.
Read the full methodology behind the Skift Travel 200.
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